Revenue would not care if the house sold for less than market value.
And stamp duty is paid on whatever value the house is sold for
....
The next step will be to put the house on the market. I have always had some doubts about the valuation, which seemed very high, and wonder if the estate agent will be able to realise the value she put on it, especially given what may happen to the market in the coming months....
Where did this notion come from?Stamp duty is charged on the market value, not the selling price (if lower than MV
Where did this notion come from?
I don't believe this is correct, were it to be so, it would be saying that if a property is advertised on my.home.ie for 300k and I do a deal to purchase it at 280k, I have to pay Stamp Duty of €3,000 and not €2,800.
source: https://www.revenue.ie/en/property/stamp-duty/property/rates.aspx
"When the Stamp Duty rate is not fixed and there is no gift involved, you multiply the consideration by the appropriate Stamp Duty rate."
Consideration in this context meaning purchase price.
It's only where the property is a gift (which means there is no purchase price) that the market value could be used; since it's the only figure you would have to calculate stamp duty.
Thanks for all the replies. The up to date position is that the house has been professionally valued for probate purposes at 700k. This valuation seems correct to me based on other sales locally. This means that each of the four brother's share is worth 175k.
In order to enable us to buy the other 3 out and extend it I think the other three would be willing to let us pay them 140k each. There is a recognition that my husband did a huge labour of love for the parents before they died, without which they would have had to go into a nursing home, and it also means they would have somewhere to stay when in the country. Am I right in thinking that having regard to the valuation, this would represent a gift of 35x3 = 105k and we would have to pay gift tax on that? Any thoughts welcome.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?